Tesla continues to refine its production process and find ways to make their cars cheaper. This time its the Standard Range Plus and Long Range RWD Model 3s made in China that are seeing both a price cut as well as an increase in their range.
The price cut comes not too long after reports that the company would start equipping their lower-end cars with cobalt-free lithium iron phosphate (LFP) batteries from CATL. While LFP batteries have been cheaper than their nickel-manganese-cobalt (NMC) counterparts, they are not as energy-dense and are a poor option when trying to maximize the amount of range you can squeeze out of an electric car. However, it seems that the chemistry has gotten to an acceptable level and Tesla is ready to implement the cobalt-free batteries into the lower end Model 3s and pass along some of the savings to consumers.
Oct 1st, 2020 Mid Autumn Festival 🥮 as well as China’s National Day, Tesla China 🇨🇳 officially updates pricing for MIC Model 3
SR+ starts at CN¥249,900 (~$36,800), CN¥21,650 price cut
LR RWD at CY¥309,900 (~$45,600), CN¥34,150 price cut
Demand will explode💥💥 pic.twitter.com/6j21WaXHNv
— 特拉风🇨🇳T☰SLA mania (@Tesla__Mania) October 1, 2020
As a consequence, the Standard Range Model 3 sees an almost 8% price cut and now starts at CN¥249,900 (~$36,800) and the LR RWD Model 3 sees an even larger price cut of almost 10% and starts at CN¥309,900 (~$45,600). This now makes the Standard Range Plus Model 3 that is made in China is cheaper than the US-made Model 3 which starts at $37,990.
Interestingly enough, the Standard Range Plus version of the Model 3 got a small range bump even though a switch to less energy-dense batteries was made. While the electric car used to have a range of 445km (276 miles), it has now been bumped up to 468km (290 miles). Do note that these are not ranges evaluated by the EPA, so a straight comparison to the range provided in the US-made Model 3 is not possible, regardless a range increase while switching over to cheaper batteries is impressive.
It doesn’t take an analyst to say that this price drop will help Tesla sell even more of its best-selling model and allow for more people to be able to afford to make a switch to electric cars. While the car is still not cheap when taking into account all the cars available, Tesla continues to take little steps towards making their future goal of a $25,000 possible.